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HomeMy WebLinkAboutminutes.council.19880912Regular Meeting Aspen City Council September 12,__1988 SCHEDULED PUBLIC APPEARANCE 1 CITIZEN COMMENTS 1 COUNCILMEMBER COMMENTS 2 LIQUOR LICENSE HEARING - Club Andiamo 4 BUDGET SCHEDULE 5 RESOLUTION #29, SERIES OF 1988 - Amended Aspen Mountain Lodge PUD 5 COUNTY SALES AND USE TAX 13 620 EAST HYMAN APPEAL OF CODE INTERPRETATION 17 ORDINANCE #34, SERIES OF 1988 - Water Rates 18 ORDINANCE #35, SERIES OF 1988 - Amending Alarms 19 ORDINANCE #36, SERIES OF 1988 - CBS Subdivision and Final Plat 20 777 UTE AVENUE FINAL PLAT 22 BRAND B UILDING CONDOMINIUMIZATION 24 27 Regular Meeting Aspen City Council September 12, 1988 Mayor Stirling called the meeting to order at 5:05 p.m. with Councilmembers Isaac, Fallin, Tuite and Gassman present. SCHEDULED PUBLIC APPEARANCE 1. Assistant City Manager Mitchell introduced Bob Gish, the new chief building inspector. Mitchell said Gish is already having a positive impact on the department. CITIZEN COMMENTS 1. John Doremus, representing the Mikkelson estate, asked for a policy decision from Council. (Mayor Stirling left the table due to a conf 1 ict of interest) . This is a matter of an approved project and to whom do the approvals go. Doremus said he would like a work session with Council. Fred Gannett, city attorney's office, told Council the developer for the 700 East Main project has a vested rights in the property but has failed to file the plat and PUD agreement. Gannett said this developer no longer has an option on the property. Gannett said the question is if the third party has the ability to step in and complete the process by filing the plat and PUD agreement. Gannett said this is a Council decision. Councilwoman Fallin moved to schedule this on the September 26 agenda; seconded by Councilman Isaac. All in favor, motion carried. 2. Stacy Standley told Council there is a new foundation called the Aspen Fund for Wilderness Access, sponsored by PCPA, Tenth Mountain Trail Association, Wilderness Workshop, Environmental Research Group and Friends of Hunter Creek. Standley told Council they are having a fund raiser on September 22 to create the funding base for the Aspen Fund for Wilderness Access. Standley asked for permission to hang a banner over Main street for this fund raising event. Standley said this new group of 5 environmental groups in the community feels the need to start a fund that has a pool to either give money to get access or deal with issues of public access. City Manager Bob Anderson said he does not feel this is the same political nature as Friends of Hunter Creek. Mayor Stirling moved to allow this banner to be hung over Main street; seconded by Councilwoman Fallin. Councilman Isaac said this appears to be a political interest group as opposed to an arts or athletic group. Councilman Isaac said the city has stayed away from any political questions, whether non-profit or not. Standley said this group is not 1 Regular Meeting Aspen City Council September 12, 1988 taking a political stance. They are raising funds to deal with access issues. All in favor, with the exception of Councilmembers Tuite and Isaac. Motion carried. COUNCILMEMBER COMMENTS 1. Mayor Stirling said the Aspen Resort Association and the lodging community have requested a lodging tax. This has to be a county-wide initiative. Mayor Stirling asked if Council is interested in having a discussion on this issue as it will have a far reaching effect on the community. Councilwoman Fallin said she has questions about this and any public hearing that can be held will benefit everybody. Councilman Tuite said he would rather have a work session on the October 11th special election first. City Manager Bob Anderson told Council GRIP has turned in a petition for a Charter amendment. This was not turned in time to go on the November ballot. Anderson said this is a potential item to be discussed at a work session. Council scheduled a work session for Wednesday, September 28 at 5:00 p.m. to discuss the October 11th ballot; 6 p.m. to hear a report from the committee to review the building department; and 6:30 p.m. to discuss the bed tax. 2. Mayor Stirling said tomorrow, September 13, at 5:00 p.m. there is a work session scheduled with the PCPA to discuss open space, proposal for a new 1/2 cent sales tax, and the possibility of rescinding the election on the Marolt property. 3. Councilman Gassman said he would like to remove the contract for the city hall renovation from the consent agenda. Councilman Gassman moved to add this to the regular agenda as item VIII(p); seconded by Mayor Stirling. All in favor, motion carried. 4. Councilwoman Fallin said the last weekend in August was the Windstar Symposium. Councilwoman Fallin said she had the privilege of being a host for that weekend. Councilwoman Fallin said there were 1800 participants. Councilwoman Fallin thanked Windstar for bring the symposium to Aspen and hopes that it is kept in Aspen. It is a wonderful way to close the summer. 5. Councilman Tuite moved to take the budget schedule off the consent agenda and to schedule it as the first action item; seconded by Mayor Stirling. All in favor, motion carried. 6. Councilman Isaac said there has been a lot of discussion recently about ecology, global warning, and he would like to see the city initiate a recycling center. Councilman Isaac requested 2 Regular Meeting Aspen City Council September 12, 1988 staff prepare a report on this. City Manager Bob Anderson said this is part of the private contract that the county has for the landfill. It has already started. Anderson said he will report on the status of this project. Mayor Stirling said next summer will be the 40th anniversary of the Aspen Institute and there is a proposal to have global warming as its theme. 7. Mayor Stirling brought up the Little Nell parking addition in the consent agenda. Mayor Stirling asked if this is in the best interests of the long term parking solution for the town to have the additional spots under the hotel or would it be better to have these additional parking spaces in a community-wide parking facility. Alan Richman, planning director, told Council it would be in the better interest to have these in the Rio Grande parking structure. Richman told Council the requirement placed on the Skiing Company in 1985 in conjunction with the master plan did provide options for the Skiing Company and did not require these spaces be provided in a public parking struc- ture. Richman said Council had accepted that those spaces would be located underneath Little Nell if they could be fit under there. Mayor Stirling asked if these spaces will be free to the general public. Richman said he would not think they would be at no charge. Richman said these spaces should be treated dif- ferently than those for the hotel. Mayor Stirling said he would like the city to pursue that these spaces should be accessed by skiers. Mayor Stirling moved to direct the planning director to work with the Aspen Skiing Company to designate a special kind of use for those parking spaces and come back with a recommendation to Council; seconded by Councilman Isaac. All in favor, motion carried. Councilwoman Fallin moved to approve the consent calendar as amended; seconded by Councilman Isaac. The consent calendar is A. Liquor License Renewals - La Cocina; Smuggler Land Office; Cache Cache; Carl's Pharmacy; Molly Gibson; The Steak House; Pepi's Hideout B. Minutes - August 16, 22, 24, 1988 C. Special Event Permits - St. Mary's Church; Filmfest D. Little Nell Parking Addition All in favor, motion carried. 8. City Manager Bob Anderson disposing of chairs that could meeting rooms. Anderson said th and to donate the rest. told Council a local lodge is be used by the city in their e lodge has agreed to sell some 3 Regular Meeting Aspen City_Council September 12, 1988 Mayor Stirling moved to have the city manager negotiate with the Mountain Chalet to purchase 60 chairs for up to $500; seconded by Councilwoman Fallin. All in favor, motion carried. 9. City Manager Bob Anderson said the new carpet is in in the Council Chambers. Anderson asked if Council wants staff to work on getting a different table arrangement for them. Council agreed. LIQUOR LICENSE HEARING - Club Andiamo Mayor Stirling opened the public hearing on Club Andiamo located at 517 East Hopkins. City Clerk Kathryn Koch reported the file, posting and publication are in order. Bill Jordan, representing the applicant, submitted two sets of petitions f or the record; one is signed by residents stating that the requirements of the community have not been met and this license should be granted. This is signed by 260 residents. Jordan said there is also a petition signed by employees who do not live within the city or visitors and there are 201 signatures. Jordan said there are presently 57 three-way liquor licenses, down from at least 58 so Council has already approved the need for 58 liquor licenses. Jordan told Council Mario and Robin Daniele have in excess of 10 years experience each in the restaurant business in Aspen. Mario Daniele told Council this will be an Italian medium-priced restaurant. The space is about 6,000 square feet, almost half of which will be kitchen, office and storage. Daniele told Council he is hoping to do a more year round business and they plan to be open at least part of all 12 months. Daniele told Council he plans to do some live jazz entertainment. Mayor Stirling asked if the Danieles have concerns with underage drinking. Daniele told Council he volunteers some coaching work at the high school and has been involved with being with students after their games to make sure they are not drinking. Daniele said he is against underage drinking in licensed establishments. Mayor Stirling asked f or opponents to the license. There were none. Councilman Isaac said this space has never been used for a restaurant. This location is inaccessible to wheelchairs. Councilman Isaac asked if the applicants have any plans to make the restaurant accessible. Jordan said this space was designed for a restaurant when accessibility was not required. Jordan told Council in January 1988, the Board of Appeals acknowledged that no additional access was required for this location. Councilman Isaac said the code the city is currently working with states any space used as a restaurant or retail space must be accessible. Councilman Isaac asked that the applicants make this space accessible. Jordan said he would be willing to discuss with Councilman Isaac what could be done on a economically 4 Re4ular Meeting __ Aspen City Council September 12, 1988 feasible basis. Jordan said the code the city is working wit h now is the code in effect when the Board of Appeals unanimously decided it did not apply to this space. Jordan said he does not believe accessibility is required by law and the applicants are not willing to stipulate to it as a requirement. Jordan said they are willing to meet with Councilman Isaac to see what the alternatives are. Councilman Tuite moved based on the evidence presented at a public hearing held September 12, 1988, relating to the applica- tion of Daniele Imports, Ltd for a three-way liquor license, the city Council finds that the needs of the community have not been met and the license as applied for a hereby granted; seconded by Councilwoman Fallin. All in favor, with the exception of Councilman Isaac. Motion carried. Mayor Stirling said the applicants should discuss with Councilman Isaac as a representa- tive of the handicap community to see what can be come up with for accessibility. BUDGET SCHEDULE Council went over the budget schedule, approved the schedule except moved the October 11 through October 27 meetings to November 1 through November 11. RESOLUTION #29, SERIES OF 1988 - Amended Aspen Mountain Lodge PUD Mayor Stirling said Council has received a letter from the Committee to Preserve Aspen's Zoning, w hick addresses the adoption of the PUD amendment. Council was also hand delivered a letter from Bob Hughes regarding the previously mentioned memorandum. Mayor Stirling suggested Council deal with the PUD first. Alan Richman, planning director, told Council most of the changes in th e PUD agreement are in response to Council's requests at the last meeting. There is a change on the first page which was a request by the city attorney to clarify the nature of the Savanah Ltd. partnership. Richman pointed out page 6 inserts the date October 3, 1988, which Council agreed to at the last meeting. Richman reminded Council at the last meeting there were discussions about the language regarding the sequential building permit. Richman said the staff indicated they were comfortable with the language. After discussions, staff felt this might be compromising some legal positions about the excavation versus the foundation permit. Richman said this language places the city in a better position. Richman told Council on page 7, Council raised some questions about the construction schedule, that it was very open ended with 5 Regular Meeting Aspen City Council September 12, 1988 the dates not being commitments. Staff suggested the dates be more definitive. Richman pointed out on page 14 there is the insertion of dollar amounts for financial assurances for phase one. The amounts have been increased by 5135,000, $100,000 of this is for 25 percent additional for landscaping, the additional 535,000 is for paving and other updated costs. Richman said this also states that $135,000 has already been escrowed with the city as part of the 5650,000 to fill in the hole should construction not proceed. Richman told Council the reason for the language is that the excavation and landscaping, site improvements are really two distinct phases of the project. Richman said if the appli- cants get through the excavation and the project is brought up to grade, there is no longer a need for that 5650,000 and there will be no need for the 5135,000 until the project gets beyond that phase. Richman pointed out that page 16 on financial assurances requires Council's approval for substitute of that assurance. Bob Hughes, representing the applicant, told Council the escrow instructions provide that as soon as the project goes to the next phase permit, the money kicks back to the applicant. Richman told Council this will return 5515,000 of the 5650,000 at such time as th e structural and foundation work comes to an at grade slab. The 5135,000 will remain with the city f or on-site improvements. Richman said on page 20 the owner is acknowledging that if Ute City Place should not be constructed or should not be completed by the time the Ritz is completed, that the 37 employee housing spaces should be secure. This page recognizes that if Ute City Place is not ready at that time, the owner is obligated to provide the 37 spaces elsewhere to the city's satisfaction. Richman said page 22 addresses also that Ute City Places is not in the ownership of the applicant at this time. Richman said page 25 clarifies the method of calculation to get to the 198.5 employees housed. Richman pointed out that the amount for site improvements and landscaping for Summit Place have not been identified yet. Perry Harvey, representing the applicant, told Council he has provided amounts to the staff to be verified. Harvey said the site improvements are 54,000 and 125 percent of the landscaping is 515,500. Richman said the applicant is verifying that that money is due at the time of the building permit application, which is normal procedure. Richman said page 30 is a restatement of the requirement that if there are substitutions for that financial guarantees, this requires Council approval. Richman told Council on page 33 the financial assurances for Galena Place are 527,500. Richman pointed out on page 43, the applicant has agreed to -~ secure the demolition of the Grand Aspen by a lien on lot 5 in 6 Regular Meeting Aspen City Council September 12, 1988 case the city is required to spend funds to demolish it. Gannett told Council there was no subrogation sign off clause by the lender on the Grand Aspen. Gannett said the applicants have agreed to add a sign off clause f or the lender. Richman said page 45 has the date April 1, 1989, for the estab- lishment of the escrow account that the city can draw from f or drainage improvements. On page 48, there was additional language for the improvement district. Schedule 8 is being prepared by the- engineering department establishing what the requirements are for that project and the owner agrees to complete those improve- ments to the satisfaction of the city engineer. Richman said page 50 has the verification of previously demolis- hed units, which the owner is agreeing and confirming the residential units. The 275 hotel units are verified in scheduled 9. Richman said the park dedication fee will be verified prior to the issuance of a building permit. Councilman Isaac said there is no park dedication fee for phase one, and asked if is this the ice rink and the park. Richman said phase one is all lodge units. This development was reviewed under the previous land use code, which did not have park dedication fee require- ments for lodge units. Richman said Resolution #29, Series of 1988, grants approvals including confirmation of the growth management allotment of 172 lodge units, amended plats and agreements, exemption for the conversion of 4 units at the Grand Aspen hotel. Richman said the rezoning and subdivision for the park and ice rink is not taking place at this time. Richman said in section 2 of the resolution, the Mayor is authorized to sign the plat agreement, and any other documents for recording. Staff is recommending this action take place by resolution. Councilman Isaac moved to approve Resolution #29, Series of 1988; seconded by Councilman Tuite. Councilman Gassman asked if this resolution is approved, what effect does this have on the petition or the election. Gannett said the position the city has taken with respect to the election is if Council passes this resolution, the election will not effect the approval of the approval of the amendment process. Gannett said the vote of the electorate will not retroactively effect the approvals granted by the city. Gannett told Council whatever action the city takes, there will be legal action to define whether or not this was appropriate. Gannett said his position is if the Council grants approval of thi s amendment process, the election will not effect it. Gannett said if applicants do not file the plat and obta~n a foundation permit by October 3, it pulls away the approvals given. 7 Regular Meeting Aspen City Council September 12, 1988 John Sarpa, representing the applicant, said they feel the approvals of phase one help to clarify this phase vis a vis the impending special election. Sarpa said there are parts of the agreement which are part of the first phase. Sarpa said if the applicants had not had a dialogue with Council on phase two, they would not be at this stage of the discussion. Sarpa said the applicants dropped units and FAR on phase two as well as dedi- cated a park to the city as part of phase two. Sarpa said the park and phase two will go back to P & Z and Council and will be pending for some time. Sarpa said there could be a situation with approved phase one, but the park and phase two would be in question and how does this effect the full PUD. Sarpa said the applicants feel the election is critical to what happens with the Ritz phase one. Harvey said the ballot question states anything in the amendment process has to go back to underlying zoning. The underlying zoning right for the Grand Aspen hotel is 155 hotel rooms; the applicants have agreed to 50 units. The underlying zoning for the park block is 40,000 square feet of floor area. Councilman Gassman said the desire of the petitioners is to have an election on the hotel and maybe the petition could have said something else. However, the desire in the community is to have a voice on this project. Councilman Gassman said if this is approved before the election, it will cause time, expense and difficulty for everyone involved. Councilman Gassman questioned doing that if everyone is serious that the community should have a voice in this project and why be afraid of letting the com- munity have a voice. Councilman Gassman said there are more people that signed the petition than elected the Council. Councilman Gassman said if one denies that a sizeable portion of the community is asking the city to let them have something to say about a project that will have a tremendous effect on the community, it is an untenable position. Councilman Gassman said it is hard f or him to sit in a democratically elected position and to deny people the ability to comment on something they think is important. Councilman Gassman said the only reasonable thing to do is delay action on this resolution until after the elec- tion, which is only 30 days. Councilman Gassman said if the election shows there is measurable opposition to the hotel then this is back at the beginning and approval of the resolution has not gained anything. If the referendum is not successful and the hotel is approved, then Council can approve the resolution. This will save everyone a lot of trouble and will be more direct. Sarpa said the applicants know there are a lot of people in the community who feels strongly about the hotel and who are opposed to it. Sarpa said the applicants want to have a clear signal from the community and expect to get it from the election. Sarpa 8 Regular Meeting Aspen Citv Council September 12, 1988 said an extremely important part of the democratic process relates to all the efforts and thousands of hours people have spent in the process, following the rules and extensive inter- action and response with the community. Sarpa said the appl- icants have responded reasonably in many areas. Sarpa said the applicants feel that the community's ability to interact through the process and through the elected officials has been an adequate one. Sarpa said the applicants reached an agreement in May with the Council on what had to be done by September 12. The applicants and the city agreed that on September 12 the issue would be decided. Sarpa said there is no reason for an interven- ing motion to offset the earlier agreement. The people of this community will have the opportunity to vote. There is some point at which Council has to take the responsibility and meet the obligations they committed to. Sarpa said the applicants have worked very hard in the intervening months to do what they could to bring this to a culmination today. Sarpa said as an official process, there is no reason to delay the decision any further. Councilman Gassman said he is not being critical of the way the process ha s worked. The applicants have been very responsive. It is the applicant's misfortune to have inherited a big project. Councilman Gassman said the community will get to vote on this but the difference is whether the vote means something or not, whether it has an effect on the hotel or not. Mayor Stirling said the removal of 105 rooms from phase two and the dedication of a block between Dean and Durant were both significant. Adding Ute City Place as employee housing of phase one was significant. The new financial assurances are also significant. Mayor Stirling said he felt this summer that all systems in Aspen were on overload and there was an incredible amount of congestion and busyness that was pushing to town to its limits. Mayor Stirling said what is threatened by this is the quality of life and the quality of visits. Mayor Stirling said the fundamental issue is density and size and a question of balance. Mayor Stirling said it could be argued that the community has had sufficient voice through the entire PUD process because of the public hearings. Mayor Stirling said in this case there is a significant segment of the community that has lost confidence in the Council and has brought f orward an initiative petition. Mayor Stirling said his original suggestion was to extend the PUD approval process to October 15 to allow plenty of time and to integrate the election as well. Jim Curtis said f or a proposal of this magnitude that will be impacting the community for 50 to 100 years, it is appropriate to get additional feedback from the community and to have a public vote. Curtis said this decision is an important as any other major decision that will impact the community. Curtis said he 9 Re4ular Meeting Aspen Citv Council September 12, 1988 feels there has been an abuse of the PUD process primarily in overloading the development in one location that is not consis- tent with the image and the character of the community. Richie Cohen said the citizens have charged the Council as elected officials to represent the community in whatever way they feel. The Council was questioned during the election process on how they f elt about this project. Cohen pointed out the Council recently approved a code amendment on the zoning codes. There were not complaints about the PUD at that time. The Council is being asked to give up one of the most valuable tools that a legislative city government has in controlling how things are done . Cohen said th i s i s a dense project but is no where as dense as what the alternative may be. Cohen said the petitioners already got some additional time. Delaying this would be giving them an unfair advantage over an applicant who has worked for 5 years on this project. Cohen urged Council to do their job and vote on this application. Bob Hughes, representing the applicant, said there has been a lot of money invested by the Savanah group in reliance upon an approval process that took over 30 months of meetings. This approval had been reaffirmed without reservation on several occasions. Hughes reminded Council last May a majority of Council invited this applicant back into the process and told the applicant if they did their work, there would be a decision by September 12. Hughes said to tell the applicant they are not going to get a decision because there was an intervening group of people does not seem fair. Hughes said the processes should be fairly applied. Mayor Stirling said the reality is that this application requires another extension. Sarpa said after the resolution was adopted in May, it was to finish the approval process by September 12. Sarpa reminded Council they had a work session to determine what that meant. Sarpa said it means this resolution of approval that the applicants are asking for tonight and that in all probability the staff would not be able to complete their work for the permits. Jon Busch said whenever there has been a controversial issue in this community, there has been a movement by a core of opponents to come before Council and try to derail the process. Busch said that months and months of planning often end up at the last moment getting thrown out. Busch requested Council look to their legal advisor and take the action which protects the city in the best possible way. Bruce Kerr said if the election happens, he would be placed in the position where if he is an opponent of the hotel but against 10 Regular Meeting Aspen City Council September 12, 1988 the amendment to the land use code, he cannot win. Kerr said the ballot issue as drafted is very unfortunate and will mislead the voters. Kerr said the only fair way to do this is to approv e this resolution and let the October 11th election become a Ritz vote. Tony Whaley said she is in favor of the Ritz Carlton proposal. Ms. Whaley said if Council does not approve Resolution #29, it is an abdication of their responsibility and of what they were elected to do. Ms. Whaley said the park is a generous contribu- tion and is needed in the area. Ms. Whaley said the October 11th election is confusing. Mary Martin said the principals of the PUD amendment 10 years ago forced a change in the county home rule charter that would prohibit any citizen from initiating a change in land use, which is ironic. Russ Newell told Council people in business make their money in 6 or 7 months of the year. Newell said this process has been going on long enough and this should be voted on tonight. Fred Smith, Aspen Skiing Company, said it is important that each Councilmember has made their educated opinions about what they have heard and seen in this process. Smith said this entire process has been extremely extended. The land use process requires education and is akin to a quasi-judicial proceeding. Smith said the Skiing Company is in favor of the Ritz Carlton. Smith said it is important that Council proceed with the process and proceed with the agreement made in May. Joe Edwards, representing the petitioners, said he would like the opportunity to comment on whether this should be approved by ordinance or by resolution. Edwards said what is going to happen if this resolution is approved because of the mandates of the procedures, the October 11 election will probably not effect phase one, although courts will comment on that in the f ut ure. The election in October will only have the effect on confirming future approvals, phase two and other approvals, to the point where they may not exceed the existing zoning. Edwards said what will happen if Council approves this, within the next 30 days, a referendum petition will be circulated to refer to the voters Council's action of approval. This will require only 330 signatures and Council will be required to adopt this or to set a second election. This will result in a two election process, with a separate election to determine whether the voters will sustain or reverse this approval. Edwards said another impact is that within 30 days they will have to file another lawsuit questioning the legality of Council's action. The committee has raised the issue that under PUDs by 11 Regular Meeting Aspen Citv Council September 12, 1988 the code, Council is not authorized to grant increases in density or increases in floor area that can be devoted to a particular use. Edwards said the committee believes the code does not allow this type of increase. Edwards said if Council chooses to adopt this by resolution rather then by ordinance, this will precipit- ate another lawsuit. Edwards said the opposition has the opportunity to raise the question of whether or not a referendum on a resolution can be done. Edwards told Council Margolis says that it can and the City's Charter only talks about ordinances being referred. Edwards said the proposal is that Council continue this f or 30 days. Edwards said many continuances have been granted at the request of the applicant. The request to Council to continue this for 30 days will simplify the process. Edwards told Council if the October 11 initiative fails and the hotel wins, that will probably be the end of this. One election and that is it. Edwards said he, too, experienced a gridlock this summer of the traffic. To add another hotel of this magnitude within an already high dense area will bring it to a stop. Edwards said in all other dimensions, phase one of this hotel is larger than the Roberts hotel. Edwards said the magnitude of this hotel is unimaginable. The city would be retreating from its best marketable product in the community, which is smaller lodges and quietude. This project would be killing the unique thing that Aspen had to sell. Richard Roth asked Council if they were elected by developers or by citizens of this community. Council's main question has to be what can they do that is fair to a large part of the community. Roth asked if a project which has a totally negative impact on every aspect of the community is good for the community. This project will make every problem the community has worse and solves no problems. Roth urged Council to reject this project on its merits. Bruce Baldridge said he feels Council is more qualified than the voters after all these meetings to make the decision on this project . Phoebe Ryerson said Aspen' s economy depends on the courtesy given to those people who come to ski. Ryerson said she feels it is incredible to stall and stall. Bill Martin said he supports passing the Ritz Carlton project. Richard Compton said this project will exacerbate the serious problems in the com- munity and asked Council how they could approve a project that will create problems that Council does not know how to solve. Councilman Tuite said he feels fairness and good faith have to take precedence over waiting f or an election. Councilman Tuite said if this hotel does not go in, another hotel of 200 rooms 12 Regular Meeting Aspen Citv Council _ September 12, 1988 will go in. Councilman Tuite said it is an economic reality that small hotels are gone. Councilman Isaac said when he took an oath, he stated he would uphold the Charter and the laws of Aspen. Councilman Isaac said in May Council made an agreement with the proponents stating they would give a decision by September 12. The Council should vote. Councilwoman Fallin said it is Council's duty to act on this project tonight. Councilwoman Fallin said through all the previous projects she has sat through, never once did people feel these project or PUDS or SPAs warranted an election. The people trusted the public debate and there have been input of the public and changes made in the projects. Councilwoman Fallin pointed out when an election is held, the outcome is either yes or no. There is no input from the public on negotiated issues. Councilmembers Fallin, Gassman and Tuite in favor; Councilman Gassman and Mayor Stirling opposed. Motion carried. Gannett said Council has proceeded historically on motions, resolutions and ordinances. Gannett said the code does not mandate an ordinance. Gannett said the committee's interpreta- tion of the Charter is not accurate. Council has discretion to go forward as they fit. Adoption of this project by resolution is defensible. COUNTY SALES AND USE TAX Tom Oken, county administrative services director, told Council the Commissioners want to place on the November ballot a proposal for an additional 1 percent county sales tax. Oken said this tax will be used for open space acquisition and maintenance of real property, water rights, development rights and other interests in land. Oken told Council this additional 1 percent county sales tax requires recision by the city and Snowmass of their 1 percent sales tax. Oken told Council the county proposes that this open space tax will be collected to insure the city loses no revenues. Oken said there is an agreement to this end. Bil Dunaway asked if this includes the lodging tax. Oken said this is a separate proposal for 2 percent tax solely on short term lodging. Mayor Stirling asked if it is not possible for the county to make open space purchase with their existing revenues. Oken told Council the county has been fairly strapped since the implementation of the "Fenton" amendment and does not have discretionary funds to purchase open space. Oken said the last major purchase the county made way the North Star and since 1983, the country has not made any open space purchases. Oken told 13 Regular Meeting Aspen City Council September 12,__198.8 Council the county does not have funds available to support financing. Oken said this tax would generate about $400,000 annually for the county. Mayor Stirling said there seems to a tendency to use the city's open space for other things. Is there a safeguards proposed to protect county's potential open space. Oken said the resolution states the funds can only be used f or open space purposes. Oken said the county would welcome any recommendations to beef up that language. Oken told Council the state collects the sales tax. The state will send the city a check for the same amount as it would without this county sales tax. Oken said the city would see no difference in terms of cash flow and would get exactly the same revenues. Councilwoman Fallin said in recent times, the city's major land purchases have not been in the city. Councilwoman Fallin asked if this tax would enable the city to do a joint venture with the county. Oken said the county would have funds to contribute to purchases. Mayor Stirling asked how the share that comes back to the city would be computed. Assistant City Manager Mitchell said the collectors would have to identify where they are collecting the tax from and the state would be able to determine if this collected inside or outside the city limits. Mitchell said an outstanding issue is whether the city can rescind the tax based on the encumbrances the city has against this tax. Mitchell said this will be ref erred to bond counsel. Mitchell said there is no language in the existing bonds to allow this to happen. Fred Gannett, city attorney's office, told Council if they want to take action on this request, it should be discretionary on report of bond counsel. Oken said without the city's approval, there is no sense in the county placing this issue on the ballot. Councilwoman Fallin said she has problems with the fact that the city's collection of the open space tax is already encumbered. Councilwoman Fallin said she would like to know more how this tax will be distributed. Oken said the state knows where the point of collection is and where the business is located. Oken said the state does this procedure with the existing sixth penny tax. The state reports exactly what is collected of that county tax within the city limits. Mayor Stirling asked if there is an allowance made for the upkeep of properties the county might purchase or if it is the county's intention to do the maintenance on the trails instead of the city. Oken said the resolution and the ballot question provide for the acquisition and the main- tenance of properties that are acquired. Mayor Stirling said the county is requesting the city's participation in two revenue raising issues. Mayor Stirling said the city has been asking to work on redistribution of revenue with the county on annexations. Mayor Stirling said this might be a context to talk about a 14 Reaular Meeting Aspen_City Council September 12, 1988 commitment from the county on this redistribution. Oken said he has received a direction from the Commissioners to discuss this redistribution. Councilman Isaac moved to approve the agreement contingent upon approval of city's bond counsel; seconded by Councilman Gassman. Councilman Tuite said he would like some assurance from the state on their collection that they can handle this. Councilman Isaac added this as an amendment to his motion; seconded by Councilman Gassman. All in favor, with the exception of Mayor Stirling. Motion carried. Oken said the use tax is similar to a proposal that was defeated by the voters two years ago. Oken told Council at that time the use of the tax was exclusively f or county roads. This proposal has been expanded to include use of at least half of the proceeds for highway 82 improvements. Oken said the state legislature has turned down the Governor's request for high priority highway improvements. Oken said the Board's aim with these funds for highway 82 to is reserve more design options than applying general highway standards to four-lane. These funds could mitigate the impact on the county of a four-lane highway. Oken said two years ago when the proposal was put before the elec- torate, there was a published road management plan. This is the same plan the county is trying to fund with this tax. Oken told Council the cost of upgrading Brush Creek road will add $500,000 to these costs. Oken told Council the use tax is proposed to be either 3 or 4 percent use tax contingent on whether the sale tax issues passes or not. This would match the amount of the county sales tax that is in place. Oken told Council the use tax would generate $600,000 at the 3 percent level net of collection costs because the county has to collect this tax or $800,000 per year at the 4 per cent level. Oken told Council this tax would only be in place for 10 years. City Manager Bob Anderson said in this instance the city is going to give up some revenue potential. Anderson asked if the county has calculated that. Oken said the city would be giving up the possibility of imposing their own use tax. Oken said because the city is home rule, they could impose an additional use tax on top of this one. Oken estimated half would be a reasonable estimate the city could generate from a use tax. Oken told Council the county has a limited number of different taxes it can turn to for revenue sources. Counties can only tax in ways that are authorized by state statute. Mayor Stirling asked the total road and bridge budget for 1988. Oken said it is 15 Regular Meeting Aspen City Council September 12, 1988 approximately $2,000,000 with $1,000,000 for operations. Councilman Isaac asked if this use tax would free up some of that money so it could be used for other projects. Oken said the funds would go solely to capital purposes on roads. At the $300,000 level, this would enable the county to do the projects that are already in the plan. Oken told Council the current plans show the county to be short more than this $300,000 annually. The plan for the next 5 years has about $4,000,000 of road projects in it; the use tax would be funding about half of what is in the current road plan. Councilman Tuite said he likes the funding for highway 82 but has a problem that funding highway 82 is only 50 percent of what is being generating. The city will not be sharing in any of these revenues. Councilman Tuite said as the city annexes and takes on more road and bridge, there is again the issue of distribution. Oken said the question is structured to state "at least" 50 percent of the funds go to highway 82. Oken said city residents do drive on county roads. Oken said if the funding is in place, the city would be in a better position when they are looking to annex and asking the county to improve the roads before the city takes them over. Councilman Isaac asked if the city has any responsibility in collecting the revenues. Oken said the city would through the building department. The county would reimburse the building department for the costs of collection. Anderson said the city has put priorities in their budget process like supporting arts and non-profit groups. Anderson suggested if the city agrees with this, the county would be in a difficult moral position to not deal with the sales tax splitting issue and also taking over the entire cost of welfare and social services that the city is currently putting money into. Anderson said one could argue that some of the money spent from the county's general fund f or road projects should be re-directed. Councilman Gassman agreed with this. Councilman Gassman said he has reservations about the building department becoming a collection agency. Councilman Isaac asked if this can be tabled until after the November 8 election. Oken said the county needs approval from the city before putting it to the electorate. Oken said without approval of the municipal- ities, the use tax would have to be shared based on the under- lying sharing of the sales tax. Mayor Stirling suggested discussing this with the Commissioners at the September 19th work session. Oken said September 19th is the county's deadline for ballot issues. Mayor Stirling said he has difficulties with new taxes. Mayor Stirling said these are inflationary, and he has a lot of 16 Regular Meeting Aspen City Council September 12, 1988 misgivings about both of these. Mayor Stirling said highway 82 is everyone's responsibility but through the state highway department. Mayor Stirling said he feels the Governor will move aggressively next year to deal with highways. Mayor Stirling said doing something like this will take the pressure off the highway department. Oken said the county has a public hearing scheduled September 19 on all the ballot issues. Council agreed to discuss this with the county September 19. 620 EAST HYMAN APPEAL OF CODE INTERPRETATION Alan Richman, planning director, told Council this is a small application of a rather significant principle. This request is being brought to Council under the interpretation provisions of the new Code. Richman told Council there are a large number of non-conforming buildings in the community, structures which are over FAR. Richman said with the changes in the Code over the last year to definition of FAR and open space, none of the buildings will have the potential to enclose areas under decks or overhangs. Richman told Council it is not clear with the language of the non-conformity section whether that was Council's intent. The language states, "a nonconforming structure shall not be extended by an enlargement or expansion that increases the nonconformity". Richman said the city has not done well in defining what is meant by increasing the nonconformity of a structure. Richman said staff normally uses does this increase the FAR or reduce the setbacks between structures as a way a measuring the increase of nonconformity. Richman said this has not been clear in the code. Richman said the area in question, an area under an overhang of more than 3 feet counts towards FAR. The question is if an applicant should have an opportunity to take an area that is covered by more than 3 foot overhang and enclose it. Art Daily, representing the applicant, presented a memorandum and a photograph to illustrate this request. Daily told Council the applicant proposes to move the windowed area on the second story out 2'8" about 50 feet across. Daily told Council the existing overhang is 5' 8" in depth. In the present code, the 2' 8" is counted toward the floor area of the building. Daily said the entire 5'8" was counted when the building was constructed. Daily said this is being brought to Council to raise their awareness of the potential problems of this type request in the future. Daily told Council the code states, "a nonconforming structure may be extended or altered in a manner than does not change or that decreases the nonconformity". Daily said the nonconformity in this instance is that this building is over its allowed floor area, which is because of code changes since the building was constructed. Daily said the applicant's proposal does not 17 Regular Meeting Aspen City Council September 12, 1988 increase floor area. This is enclosing 133 square feet which has been counted against the floor area of this building already. Daily said the applicant is willing to propose a trade off. There is an overhang behind the building of about 300 square feet, which is also included in the building's FAR. The appl- icant is willing to covenant that that 300 square feet will never be enclosed. Richman said he feels more comfortable with a trade off of space that is under an overhang. Richman told Council he came close to approving this at a staff level, but the important point is to get Council feedback on buildings that already exceed FAR having the opportunity to increase their internal floor area. If Council is not comfortable with that, staff should do some work on the code. Councilman Gassman said he does not have any problems with this application; however, to enclose every balcony in town is something Council should look at. Councilman Tuite moved to accept alternative 3 as amended in this meeting and as identified in the planning office memorandum dated September 7, 1988; seconded by Councilman Isaac. This extension is for 2' 8" with the trade off on the back of the building. All in favor, motion carried. ORDINANCE #34, SERIES OF 1988 - Water Rates Councilman Isaac moved to read Ordinance #34, Seris of 1988; seconded by Councilwoman Fallin. All in favor, motion carried. ORDINANCE #34 (Series of 1988) AN ORDINANCE AMENDING SECTION 23-101(a) OF THE MUNICI- PAL CODE OF THE CITY OF ASPEN TO ESTABLISH MONTHLY WATER RATES AND CHARGES FOR METERED, NON-METERED, AND CONSTRUCTION RATE CITY OF ASPEN WATER CUSTOMERS FOR THE BILLING PERIOD BEGINNING SEPTEMBER 15, 1988, AMENDING SECTION 23-43 (a) 5 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN TO MODIFY THE EXTRAORDINARY WATER USAGE DEFINI- TION, REPEALING SECTION 23-43 (a) (7) , AMENDING SECTION 23-42 (b) TO MODIFY THE WEIGHTING FACTORS ASSIGNED TO SERVICE AREAS, AMENDING SECTION 23-42(c) TO REMOVE THE OUT-OF-CITY CHARGES AND DELETE REFERENCE TO UTILITY INVESTMENT CHARGES, AND AMENDING SECTION 23-58 (b) TO ESTABLISH WEIGHTING FACTORS BY SERVICE AREA TO BE USED IN CALCULATING UTILITY INVESTMENT CHARGES was read by the city clerk Councilwoman Fallin moved to adopt Ordinance #34, Series of 1988, on first reading; seconded by Councilman Tuite. 18 Regular Meeting Aspen Citv Council September 12,___1988 Councilman Isaac asked why the weighting factors in sections 4 and 6 are different. Cindy Wilson, finance director, said the weighting factors in section 6 apply only to the tap fees. Ms. Wilson said what Council has been discussed for the past several months apply only to the monthly rates. Councilman Gassman said he is misgivings about the whole water ordinance. Councilman Gassman said every time Council talks about this, it gets more and more complicated instead of getting simpler. Councilman Gassman said he feels the city is making some mistake with this ordinance and suggested going back to the original system. Mayor Stirling said as much as he disliked the 10 or 20 percent annual increases, that may be the most straight forward way to proceed. Councilwoman Fallin said f or most people, their water bill has been more than all other utilities combined. Council- woman Fallin said she does not f avor passing this. Councilwoman Fallin said the city has tried to make this system equitable, and it has not worked out. Councilwoman Fallin asked if the city can solve the problem in the water department budget by going back to straight increases. Ms. Wilson told Council the rates proposed in Ordinance #34 are designed to generate more revenues than under the current rates in order to build the fund balance. The current rates give credit to customers for some refunding of the water bonds. Ms. Wilson reminded Council they looked at going back to the pre- water management system at the July 12th work session on a modified basis. Ms. Wilson said about a 20 percent increase in the old system would generate the total revenues Council is discussing. Ms. Wilson said under the old rates, out-of-city customers were charged double rates on their usage. These customers will see an increase compared to the July rates. Council suggested a work session on September 20th after the water department budget session. Councilwoman Fallin withdrew her motion. Mayor Stirling moved to table this to September 26, 1988; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #35, SERIES OF 1988 - Amending Alarms Councilman Isaac moved to read Ordinance #35, Series of 1988; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #35 (Series of 1988) AN ORDINANCE REPEALING AND RE-ENACTING SECTIONS 8 1/2- 2, 8 1/2-6, ADDING SECTION 8 1/2-1.1, 8 1/2-6.1, AND 8 1/2-7.1 was read by the city clerk 19 Regular Meeting Aspen City Council September 12, 1988 John Goodwin, police chief, told Council the basic difference from the existing ordinance is that Ordinance #35 is specific about the police department not responding to alarms where people have not complied with the permit requirements. This ordinance also specifically states that alarm companies have the responsibility for making sure their customers obtain the permits and comply with the requirements. Mayor Stirling moved to adopt Ordinance #35, Series of 1988, on first reading; seconded by Councilwoman Fallin. Roll call vote; Councilmembers Gassman, yes; Fallin, yes; Tuite, yes; Isaac, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #36, SERIES OF 1988 - CBS Subdivision and Final Plat Cindy Houben, planning office, said this is first reading of the vested rights ordinance and final plat consideration. Ms. Houben said staff would like to change the ordinance to indicate that vesting will occur at the time of recordation of the final plat. This application was reviewed by P & Z and was submitted under the old code. This went through a shortened process because there were no subdivision issues other than everyone is aware of the demolition and displacement issues. Ms. Houben recommended approval of the application although the staff would like the applicant to reconsider and put in some employee housing if they can make that change. Ms. Houben said there are conditions requiring the applicant to show the parking spaces on the final plat and the existing utility sources and metering on the project. Councilman Isaac moved to read Ordinance #36, Series of 1988; seconded by Councilwoman Fallin. Mayor Stirling said the important issue is whether Council wants to talk about employee housing as part of this proposal. Sunny Vann, representing the applicant, said the issue is whether employee housing has to be provided. Vann said there i s no r equ i t ement i n the code f o r mandatory provision of employee housing. All in favor, motion carried. ORDINANCE #36 (Series of 1988) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN APPROVING TH E F I NAL PLAT AND VESTING THE DEVELOPMENT RIGHTS FOR THE CBS SUBDIVISION IN THE SITE SPECIFIC PLAN/FINAL PLAT was read by the city clerk 20 Regular Meeting Aspen Citv Council September 12, 1988 Councilman Tuite moved to adopt Ordinance #36, Series of 1988, on first reading; seconded by Councilman Isaac. Vann told Council the conditions about parking spaces and utilities are acceptable to the applicant. Vann told Council the applicants would like to make minor adjustments to the lot widths on the plat. This project consists of 7 lots which were sub- divided into 3 and they are trying to keep the lots relatively even. Vann said this request has no material effect upon the application, the size of the buildings, open space, etc. Vann told Council staff has agreed to this minor change. Council agreed with this change. Vann reiterated there is no requirement for employee housing. This project is in full compliance with the specific requirements of the subdivision review. Vann told Council the project is scheduled to proceed this fall and is designed as 3 duplexes which meet the allowable FAR of each lot, approximately .75 to 1. Vann said there is an ability to go through special review and get a small increase in FAR which could be used for employee housing. Vann said there is no existing regulation to allow additional density on these lots. Vann said staff is contemplat- ing legislation like this but it will not be before P & Z until the end of the year. Vann told Council the applicant is not in a position to delay this project for 6 months. The applicant requested exemption from the moratorium to proceed. Mayor Stirling asked how many workers were displaced by this demolition. Vann said he does not have a count of the employees that were displaced. Vann said there were 20 legal bedrooms in this project. Mayor Stirling said he knows there is no employee housing requirement; however, is appealing to the applicant to see if there is something that could be done to address the issue of displacement. Mayor Stirling asked if the applicant is willing to participate with the city and work on the employee housing issue. Vann told Council this applicant has been delayed since the beginning of 1988 due to circumstances beyond their control. The applicants have carried the land for the entire time. Vann said the employee housing ordinance has not even yet been discussed. Vann reiterated that the FAR question is not a right; it is a special review to be approved by P & Z. Vann said the FAR required to incorporate employee housing unit may not be accept- able. Vann said to the extent that the projects proceeds and regulations come forward that would be favorable to the appl- icant, the applicant would be willing to look at these regula- tions. Vann said when this project was pre-apped, the code had just been changed to remove the displacement of employee housing issue and to substitute a cash-in-lieu. Vann told Council when 21 Regular Meetinct Ashen City Council September 12, 1988 this project is condominiumized, the project will pay a cash-in- lieu fee. That is the regulation on which the applicant has relied during the process. Roll call vote; Councilmembers Tuite, yes; Isaac, yes; Gassman, no; Fallin, yes; Mayor Stirling, no. Motion carried. 777 UTE AVENUE FINAL PLAT Cindy Houben, planning office, told Council this is the final plat stage of a growth management project which was approved to be built in phases. There are 3 units to be built in 1988, and 6 units to be built in 1989. Ms. Houben told Council this appl- icant is not requesting vested rights because they anticipate application f or a building permit immediately. Ms. Houben said the staff wants to make sure the 3 large cottonwoods on site are not taken down without being replaced on site. This is not shown on the present landscaping plan. Ms. Houben said the engineering department wants to work out a situation on the southeast storm drainage inlet to take care of the storm drainage that comes off the Aspen Mountain road. Ms. Houben said the applicants did not address an irrigation system on their landscaping plan. This needs to be addressed. The subdivision agreement should address bonding for the irriga- tion as well as bonding for the entire site not just the land- scaping within the public right-of-way. Ms. Houben told Council the applicants will pay cash-in-lieu for employee housing of $300,000. Ms. Houben recommended approval with the conditions. Sunny Vann, representing the applicant, told Council the issue is not whether the applicant must provide landscaping, which is a requirement of approval. The issue is whether the applicant has to bond the on-site improvements. Vann told Council the code requires bonding for public improvements. Under the PUD, there is a requirement that a bond may be required for landscaping on- site as well. Vann said the applicants did not include in the subdivision agreement an estimate for bonding of the landscaping on-site, which also includes irrigation and walkway lighting. Vann maintained this is not a requirement under subdivision regulations. Vann said this has been corrected in the new code by saying Council may, if they elect to, require this. Vann said the applicants have to put up 125 percent of the landscaping which has to sit until next spring because there will be con- tinuous construction for 2 years. The applicants also have to maintain for 2 years 25 percent of the bond. Vann said he feels this is an unreasonable request. Vann told Council the applicants originally represented to install a storm sewer in the Aspen Mountain road with the storm 22 Regular Meeting Aspen City_Council September 12, 1988 inlet at the southeast property corner. This was approved at preliminary plat, and was scored at growth management. The engineering department requests this inlet be moved up the road. Vann said the applicants do not want this as a requirement of the final plat and would like the plat approved as originally submitted. Vann requested the conditions be amended to reflect that the applicants are only required to bond public improvements including landscaping and irrigation within the public right-of- way and that the storm sewer inlet requirement reflect the original commitment. Vann said the applicants are willing to work with the engineering department on the latest problem of the storm sewer. Vann said the remainder of the conditions are acceptable to the applicant. Mayor Stirling asked why the 3 trees have to be removed. Vann said he is not aware of this; however, there is a requirement that any tree over 6 inches in diameter receive permit for removal and has to be off set by some additional landscaping. Mayor Stirling said he would not like to see any of these trees removed. Vann said this is a small site and is not sure exactly where the trees are. Vann said there are plans for extensive revegetation of the site and will be an extension of the adjacent Glory Hole park in terms of appearance. Councilman Tuite said he does not have a problem with the bonding the public improvements issues. Councilman Tuite said there is a severe flooding problems in this area and is concerned about the storm drainage requirement. Councilman Tuite said if placing the inlet where the applicants proposed to is not going to help the problem, there is no sense in that. Vann said there is a sheet flow problem coming down a mud road. Vann said the applicants will improve the width of the road, put in paving and curb and gutter so that water will channel to the proposed inlet. Vann said the question is whether it makes sense to put another pipe from that point up to an undefined point. Vann said it is in the applicant's best interest to participate with the city if it improves the quality of the project. Vann said he has a problem with coming up with this at the last minute and making it a mandatory requirement in the absence of knowing the details and the costs. Councilman Gassman said this may be premature because of the trees and drainage. Vann said Council does not review the trees. Charles Cunniffee brought a photograph of the site and explained the trees are on an arm of the parcel that will not be built on and will not be effected. Mayor Stirling said in the past the city has just required bonding of the public improvements. Ms. Houben said most growth management projects are also PUDs; very rarely does the city see a residential GMP with a PUD associated. This property is not zoned PUD and did not go through the PUD 23 Rectular Meeting Aspen Citv Council__ September 12, 1988 process. Ms. Houben suggested since the majority of the work will be done in 1989, that bonding not be required until the second building permit phase. Vann said the regulations are clear; if it is a subdivision application, it is required to bond the public improvements. Mayor Stirling moved to approve 777 Ute Avenue application for GMP approval with conditions (1) as written; (2) as written; (3) to be modified to only include bonding f or public landscaping; (4) excluding (a) and (b) modified to re-write #1 to address the new issues that has come forward, and the final approval and sign off is subject to participation on some level; seconded by Councilman Tuite. Vann said if condition #3 is as stated, then condition #2 is not required. Mayor Stirling amended his motion to exclude condi- tion #2; seconded by Councilman Tuite. Vann asked if Council would accept the city engineer's approval for #l. Mayor Stirling amended his motion to include that; seconded by Councilman Tuite. All in favor, motion carried. Councilman Tuite moved to suspend the rule and extend the meeting 30 minutes; seconded by Mayor Stirling. Councilman Tuite and Mayor Stirling in favor; Councilmembers Fallin, Gassman and Isaac opposed. Motion NOT carried. Mayor Stirling moved to continue the meting to 6:30 p.m. Septem- ber 13, 1988; seconded by Councilman Tuite. All in favor, with the exception of Councilman Gassman. BRAND BUILDING CONDOMINIUMIZATION Cindy Houben, planning office, told Council the applicant is requesting to pay the entire housing f ee f or the 7 units. The planning office has come up with a compromise of using 516,750, which is the moderate income housing figure in growth management, and subtract that from the fee to be paid on the free market unit fee of $ 32 ,17 5 . Ms. Houben said staf f does not feel the city should waive or eliminate the fee for the free market units because it has been determined there is an impact on affordable housing when free market units are condominiumized. Jane Ellen Hamilton, representing the applicant, said the applicant is allowed to pay a fee in its entirety as opposed on each unit. Ms. Hamilton said the applicant would prefer to deed restrict an as-built one bedroom unit. This does not appear to be possible and the applicant would like to pay the complete fee and leave open the possibility if the Code is amended, to allow the deed restriction of one unit. Ms. Hamilton told Council the 24 Regular Meet_ing Aspen City Council September 12, 1988 applicant does not want the compromise as they end up paying a lot of money and cannot give one unit. Ms. Houben told Council when the P & Z reviewed the conditional use review to allow lifting of the 6 month minimum rent restric- tion, it was the understanding there would be an on-site employee manager. Ms. Houben said if this unit is to be turned into an office, the application has to be taken back to P & Z because of th e change in circumstances. Ms. Hamilton said this was not a condition of approval but was mentioned during the P & Z discus- sion. Ms. Hamilton said the level of services will not increase with an on-site manager. The applicant will have on-site management from 8 a.m. to 7 p.m. Ms. Houben said the application stated there was an employee unit on site. It was not a condi- tion of approval because when an applicant makes a representation in an application these are to all spelled out. Councilman Isaac moved to send this back to P & Z; seconded by Councilman Gassman. Ms. Hamilton said the worst consequence would be that P & Z would refuse to lift the 6 month minimum lease restrictions. The applicant still wishes to condominiumize. This would not impact Council's decision on condominiumization. All in favor, with the exception of Councilwoman Fallin. Motion carried. Mayor Stirling said if the city changes the code to address a situation like this, the applicant is saying he will look at dedicating that unit to a moderate income unit. Ms. Hamilton said as long as the applicant is not using this as on office, he will commit to dedicating it. Jim Adamski, housing office, asked if this would be open to all employees. Ms. Hamilton said the applicant would like to have the ability to place their employees first. If there was not an on-site manager, the condominium association would have the reasonable right to evaluate a tenant. Mayor Stirling moved to accept the $36,000 with the above addenda; seconded by Councilman Tuite. All in favor, motion carried. Chuck Roth, engineering department, requested Council pass their condition requiring the application to provide a dumpster on their own property. Councilman Isaac moved to suspend the rules and extend the meeting 5 minutes; seconded by Mayor Stirling. All in favor, with the exception of Councilman Gassman. Motion carried. 25 Regular Meeting Aspen City Council September 12, 1988 Roth said he has a hard time seeing this dumpster issue is much of a preservation issue. Roth said the preservation language is very discretionary and there is nothing which would prohibit this request. Roth suggested the dumpster be placed in the corner of the building furthest away from the street. The side of the building is extremely unsightly and would be improved by having the utilities and dumpsters recessed into the building. Roth told Council the emergency access requires 20 feet, and the dumpsters are encroaching on that 20 feet. Ms. Houben said this concern came out of the conditional use review done with P & Z. P & Z determined they did not want to see any alteration to the side of the building. P & Z passed a resolution to try and initiate an alley-wide clean up of encroachments into that particular alley. Ms. Hamilton told Council P & Z did not accept the engineering department's recommendation recognizing this is a 100 year old building, which is built lot line to lot line. Ms. Hamilton said the Brand building has one of several dumpsters in the alley, all of which encroach. Ms. Hamilton said to tear out a wall of a National Historic Register building to put one dumpster in seem ludicrous. Ms. Hamilton said the applicants have agreed to put in a compac- tor to help with the problem. Ms. Hamilton said the applicants would like to work on this as an alley-wide concern rather than destroying part of the structure. Councilman Isaac agreed with P & Z. Councilman Gassman said the reason alleys are not streets is that is where the trash is put. Mayor Stirling moved to wait for the next 60 days to see the results of the alley-wide program and let Council evaluate whether this is working; seconded by Councilwoman Fallin. All in favor, with the exception of Councilman Gassman. Motion carried. Council left Council Chambers at 9:10 p.m. Kathryn Koch, City Clerk 26